Newbie's first Deal : want help!! - Posted by Tarik

Real Estate Investing
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Posted by kevin florida on October 15, 1998 at 14:35:53:

Its not as easy as posting such a question on this newsgroup buddy! Why dont you do what everyone else had to do in the beginning before you go out making such attempts to purchase property, EDUCATE your self. Go to the library, order the sheets course as i did or order one of the many great courses offered on this site. I too am a newbie and although its nice to see someone motivated to get a property on the other hand you are surely in for a huge upset. So quit being lazy trying to find the easy way out. No ones gonna just give you the secrets to success. Everyone else will tell you exactly what i have told you. You have to put some effort into it. It wont come easy. Maybe after you have shown that you have invested some time into the learning process scores of people will offer you advice. But until then give it up!!! I know this reply sounds harsh but take it as a wake up call!!!

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Newbie’s first Deal : want help!! - Posted by Tarik

Posted by Tarik on October 15, 1998 at 13:46:53:

Hi guys! thanks Terry for this web site.
Now on to business.
An agent found me a 4 unit building for sale in florida for 45,000.
Each unit is 2br,1200 sq.ft.,monthly rental $525.
what do I do next?
What questions do i ask the Realtor?
Where do i get a loan?
any investors out there?
What documents do i need to get a loan?
what would be the monthly payments for the full amt at 10/12% ?
I have no money or credit.
Help!

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Re: Newbie’s first Deal : want help!! - Posted by Mr Donald (NORVA)

Posted by Mr Donald (NORVA) on October 17, 1998 at 22:38:47:

Tank,

RTFM! This site has virtually all the answers - you just have to piece it all together.

Your main problem is NO money or credit. Good luck. Who, if anyone, will give you a loan? Will the Seller take back a mortgage for the balance?

Why are you asking about 10.5% financing when the current rate is 7% or so?

Do you know anything about property rental? Do you own property? Do you rent? Or do you still live at home with your mother?

Sounds harsh? Perhaps - but YOU have to wake up and smell the proverbial coffee first. It just doesn’t happen overnight.

Do your homework - and then ask the RIGHT questions - that show that you at least have a modicum of understanding on what we do here - or even the BASICS of a simple real estate deal - and I’m sure more of us will be willing to give you a helping hand.

Mr Donald
dlm@bellatlantic.net

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Re: Newbie’s first Deal : want help!! - Posted by Eddie M. FL

Posted by Eddie M. FL on October 15, 1998 at 23:18:49:

Tarik,

It is nice to see you going out and trying to get a deal done, it shows alot of courage. Some of the questions you are asking you should try to answer before you commit to doing this deal. You may need to sit down and read a few books. Since you do not have any money, I would suggest you go to the library and pick up a few books. A good one is "Nothing Down for the 90’s by Robert Allen.

Tarik, first thing is location!!! This property is selling for $45,000.00 and each one rents for $525, how long do they stay rented, is the landlord getting paid? In other words, try to check and see if he gets paid, the seller must have kept track somehow.

If you have no money and credit, can you find a partner, will the Seller hold the financing? Maybe he will hold the financing if you offer him a higher price.

Will the seller consider a Lease/Option? You can get a master lease done and he will assign the rents to you and you could set it up to buy in the future, but how are you going to pay your Realtor?
Have you considered tying it up under contract and finding an investor to flip it to?

The realtor will use his own contract, because he is required to.

Tarik, to get a loan you have to fill what they call a 1003, which is an application. They will ask you for some information and documents, check your credit and try to see if you are able to get a loan. You haven no credit established at all? How much is this property worth? You need to get comps., if the property is worth alot more than what they are asking, you may be able to get a hard money loan.

Tarik, like I said earlier, you need to go get a few books and start reading a little bit.

Good luck to you,

Eddie

PS: e-mail me and let me know where you are in FL., maybe we can talk.